The Open Climate Investing Book

Investors have a central role to play in stopping climate change. As the group used to analyzing risks over long term horizons, they must allocate the capital necessary to bring about the transition to a zero carbon economy. They must also capture the opportunities and avoid the losses that climate change will bring.

To make this happen, climate or green investing must go from being a niche investment to being a part of every investment. It must go from talk to action. This book is about how to make climate investing actionable. It is designed to help you investments and trades, structure portfolios and benchmarks, and find new opportunities. Best of all, it shows you how to do it with open source tools and freely available data sets.

Table of Contents

• Introduction

• Climate and Investing

• Analyzing Investments

  • Interview - CDP and Climate Disclosures: a Corporate Perspective

• Structuring Portfolios

• Setting Benchmarks

  • Interview - Engaging with Banks and Fund Managers for Climate

• Taking Climate Action

• Legal and Regulatory Considerations

• Emerging Asset Classes: Carbon offsets and negative carbon projects

• New Technologies: DeFI and blockchains

• New Assets: Carbon as an Assets

  • Interview - Inside Carbon Markets Today

• Conclusion

How to Use this Book

Please do not think of this as a "book." It is a how-to manual that you can talk back to. Use it for your climate investing, and then share what worked, what didn't, and how to make it better. Use the GitHub Discussions forum to tell me about the bugs and mistakes you find. Ask questions using the tag opentaps-climate on quant.stackexchange.com. Create issues on github for your ideas and suggestions. It will be continuously updated to reflect the latest of all its readers' experiences. If you're new to investing, welcome! Let this book help you learn about this interesting field. Ask questions. Ask for clarifications. Suggest changes. Help spread the word.

Finally, don't forget to sign up for an occasional email about our work with open source, climate finance, and climate investing.

About the Author

Si Chen was a Portfolio Manager at Fischer Francis Trees & Watts and MKP Capital Management, where he specialized in managing mortgage-backed securities, derivatives, and securitized assets for pension funds, endowments, central banks, and hedge funds. He left fund management to start an e-commerce company and an open source software company. He is currently leading the development of open source software at the Linux Foundation's Hyperledger project to use blockchain technology for climate action. He has been published in The Journal of Portfolio Management and Fixed Income Solutions: New Techniques for Managing Market Risks He thought that would be the end of it until he read a recent research paper from The Wharton School, his alma mater, about climate investing and decided he had to do something about it.

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Disclaimer

This content is published for informational purposes only and not investment advice or inducement or advertising to purchase or sell any security. See full disclaimer.